Systemic Risk of Conventional and Islamic Banks: Comparison with Graphical Network Models

The main aim of this paper is to compare the stability, in terms of systemic risk, of conventional and Islamic banking systems. To this aim, we propose correlation network models for stock market returns based on graphical Gaussian distributions, which allows us to capture the contagion effects that move along countries. We also consider Bayesian graphical models, to account for model uncertainty in the measurement of financial systems interconnectedness. Our proposed model is applied to the Middle East and North Africa (MENA) region banking sector, characterized by the presence of both conventional and Islamic banks, for the period from 2007 to the beginning of 2014. Our empirical findings show that there are differences in the systemic risk and stability of the two banking systems during crisis times. In addition, the differences are subject to country specific effects that are amplified during crisis period.

New Systemic Order and Foreign Policy Strategies of the Islamic Republic of Iran in the Middle East

The international system has characteristics that have a direct influence on the foreign policy of the countries.Among these,the systemic cycle of power is one of the most conspicuous features of the global system and the regions that affect this issue.In this vein,the systemic order resulting from the cycle of power in the strategic policy-making circle of units can play a limiting role and influence the type of strategy and strategy.The Islamic Republic of Iran is also one of the units of international order;hence,it is not exceptional.Therefore,the purpose of this study is to examine the order of the Middle East and,accordingly,to determine the strategy of the Islamic Republic of Iran in that region.Accordingly,it assumes that the regional order in the Middle East puts defense strategies,especially deterrence and passive defense,at the forefront of the strategies of the Islamic Republic of Iran in the Middle East.So,the present paper,while explaining the order of the international system and the order of the Middle East region,designs the foreign policy strategies of the regions of the Islamic Republic of Iran.

Islamic Banking System and Mode of Leasing： A Comparative Analysis in the Light of Maqasid al-Shari＇ah

This article discusses Islamic Banking System and its mode of leasing in the light of the objectives of Shari＇ah. It explores that the objectives behind the introduction of Islamic finance and banking system were the elimination of capitalist banking interest, exploitation of poor segment of the society and the establishment of an economic system which may lead to sustain a balance economic order and social justice. In this context, it intends to analyze the mode of leasing provided by Islamic Banking system in the light of the objectives of Shari＇ah and discloses that although Islamic Banking system is based on the principle of mudarbah, musharkah and Ijarah and deals with the customers in that context, yet apparently, the effects of these transactions are not much different from capitalist modes due to same consequences and effects of these transactions. It thus, provides a comparative analysis of the issue, i.e., mode of leasing at both Islamic and capitalist Banks. It argues that a common man can not avail Islamic financing/leasing if he lacks financial resources. If a poor person tries to purchase something by way of ijarah through Islamic Banking finance, he does not find any difference in the payment of the total cost between capitalist mode of leasing and Islamic mode of ijarah. Hence, this article concludes that although Islamic financing achieved a remarkable development among the Muslims, yet there is a need to revise the policy and system of Islamic financing in the light of the objectives of Shari＇ah. It also concludes that the mode of leasing provided at Islamic Banks does not accomplish the objectives of its establishment which is public interest. At present, this system is unable to assist the poor segment of the society or to provide ease to them.

The Islamic Studies in China:Research in the Field of History

A history of the Islamic studies in China,not only includes studies on world Islam,it also includes research on Islam and Muslims in China.Before the Reform and Opening Up,China did not achieve much in this field,since then,the research field of Islam and Muslim in China has been expanding and the results have been published,forming a new trend.In this field,scholars such as Jin Yijiu,Li Xinghua,Qin Huibin,Zhou Guoli,Sha Qiuzhen,Zhou Xiefan,Wu Yungui,and Yang Huaizhong have made the most outstanding achievements.Especially in the collation of reference books and historical materials,in the past 20 years,The Encyclopedia of the history of Islam,The Chinese Encyclopedia of Islam have emerged,and the Chinese and World Encyclopedia of Islamic Law and other important historical books have been published.This paper focuses on the field of historical research and divided into academic research history at home and abroad,which is discussed from several fields such as general history,special history,national history,and regional history.

The Islamic Religion in Course Curriculums of High School History Textbooks in the Republic of Macedonia

History textbooks can and primarily should contribute to the strengthening of students’awareness of universal human values.However,history textbooks can also deepen the divisions,prejudices,and uncritical attitudes,contrary to the goals of education.The youth population,which is still building and creating their point of view towards the world is the main group in the education process.The learning period,in the elementary,as well as in the secondary education is of utmost importance for the development of every human.To that end,history,through the contents of the past largely shapes our perceptions of every individual,ourselves,and the others.Since we are living in a multiethnic and multi-confessional society,I have decided to conduct an analysis of the teaching contents of high school textbooks related to religion.Another reason for the analysis is the role of religion in the formation of Balkan nations,which have made it one of the key elements of their national identities.It is often given the role of raising and strengthening the national awareness,patriotism,as well as the country homogeneity,which most often leads to forming prejudices,divisions,and discrimination towards people of minority religions.The large volume of content related to the religion,and also the mere fact that Muslims are the second largest religion group in the population,I have decided to analyze the contents which are related only to the Islamic religion.The goal is to look for both the positive and negative sides of those contents in history textbooks in secondary schools,which are backed by state institutions that are supposed to take care of the development of competitive,creative,progressive,and ethically formed human potential.The critical review will give an additional impulse to the efforts of eliminating those parts of the teaching contents that create divisions and prejudices,especially in history textbooks,so that its studying can become the key factor in the building of trust between people of different religions.

School health promotion:A cross-sectional study on Clean and Healthy Living Program Behavior(CHLB)among Islamic Boarding Schools in Indonesia

Objective:This study aims to identify the knowledge,attitude,and behavior of students using eight indicators of Clean and Healthy Living Behavior(CHLB)in relation to the health education and grade levels in Islamic Boarding Schools(IBS)in Jember regency,East Java Province,Indonesia.Methods:A cross-sectional school-based survey design was used.About 114 students(mean age of 13.17 years old)selected through a multi-stage random sampling completed a selfadministered questionnaire to measure the eight indicators of CHLB,such as washing hands with running water and soap,eating healthy snacks,using clean and healthy latrines,exercising regularly and measurably,eradicating mosquito larvae,not smoking at school,weighing and height measurement every 6 months,and disposing garbage properly.The data analyses included descriptive and comparative analyses of the difference in knowledge,attitude,and behavior toward CHLB by health education and grade level.Results:About 66.7% students received health education.Significant knowledge in CHLB in relation to health education and grade was observed(P<.05),including in-depth knowledge of exercises,measurable weight and height,smoking,and healthy latrines.Meanwhile,no significant difference was observed between the attitude toward CHLB and health education in different grade levels.Furthermore,CHLB was associated with health education,including habitual exercise and using of clean and healthy latrines.

Islamic Finance in Theory and Practice

Perspectives of the early scholars of Islamic management of an account concurred that the arrangement of organization partnership in general and Murabah （benefit sharing） specifically is the fundamental technique on which Islamic banks must depend on contributing their money to related assets. Also, the research has found that financing under the Islamic management of an account has decreased intensely from the methodology created by the early scholars. In reality, these banks have received obligation based on financing techniques and underestimated the routines for financing taking into account benefit and loss sharing. This adjustment in financing technique has perversely influenced the bad name and the desire tied with the monetary part of these banks. The study focused on the reason behind the gap between theory and practice in Islamic finance. So, the study was divided in two parts： the first theoretical part of Islamic economy and Islamic banking system, the second practical part by analysing and evaluating the relative distribution of Islamic financing methods in four famous Islamic banks. The study selected a group of Asian Islamic banks as a model for analysis and evaluation through the period from 2012 to 2014. The study concluded that the gaps result from the misuse of the roles and norms of Maqasid Al-Shariah along with the diversion in the relatively allocation of the financing methods toward debt instruments rather than equity instnunents.

Islamic Banks Impaired Financing： Relationship Between Shariah Committee Meetings Frequency and Shariah Risks Compliance on Assets Quality

This study made a pioneering attempt to econometrically examine what factors determining impaired financing using shariah committee meetings frequency from data on Islamic banks in Malaysia and how does it affects on the quality of assets. The objective of the study is to improve assessment of their assets quality so as to increase the reliability of the financial statements. The European Central Bank may find the findings from this study useful in their exercise to assess risks and assets quality of their commercial banks, a move to tackle the ailing banks in centralizing oversight supervision in late 2014. The major components of the Islamic banks＇ assets quality are impaired financing and provisions for financing impairment. In the Islamic banks, shariah committee principally manages the shariah risks non-compliance with other risks; however because their management is not straightforward, the study uses the shariah committee meetings frequency as an indicator of the assets quality. The study found the less-than-full frequency of shariah committee meetings resulted in less guidance and conformation of shariah principles, and consequentially the quality of the assets.

Influence of Social Life on Islamic City＇s Planning and Arabic House＇s Design

The originating point of this study on the social life of the Arab world and its influence on architecture and city planning lays in the simple observation of true facts of daily life which are characteristic to the Arabic Society. So the author analyses

Attitudes, knowledge levels and behaviors of Islamic religious officials about organ donation in Turkey: National survey study

BACKGROUND The most important factors affecting the decision of organ donation are socioeconomic,educational,cultural,and religious factors.AIM To evaluate Islamic religious officials’attitudes and behaviors toward and level of knowledge on organ donation and transplantation.METHODS This study surveyed 2350 Islamic religious officials in Turkey.To ensure a representative sample,we used and modified the Nomenclature of Territorial Units for Statistics.Based on the Nomenclature of Territorial Units for Statistics-II,Turkey was divided into 26 regions.The number of Islamic religious officials in each city and town in each of the 26 regions was proportionate to the population.A stratified sampling method based on demographic factors,such as age,marital status,and educational level,was used.Data were collected by PRP Research and Consultancy Company using computer-assisted personal interviewing.RESULTS Of the 2350 religious officials surveyed,59.9%were in the age group of 35-54 years;84.7%had either a bachelor’s or a master’s degree;99.7%never donated an organ;and 75.4%were not considering donating in the future.About 22%of the religious officials said religious belief was their reason for not donating;45.3%did not indicate any reason.Although 41.5%of participants considered cadaveric organ donation as the best source of organ transplantation,36.3%deemed living donor transplantation as the best option.Meanwhile,52.9%of participants considered donating an organ from a brain dead relative in case they were asked for permission;80.1%considered donating to a relative,if necessary;81.6%considered undergoing organ transplantation,if necessary.About 83.7%of participants deemed organ donation as a proper human behavior;60.5%believed that it is allowed by Islam;55%said they preach for organ donation at their mosque;and 41.1%said their views of organ donation were influenced by their leaders in society.CONCLUSION Religious officials are unsure whether or not organ donation is respectful of their religious belief,but they consider donating an organ if a relative need to undergo organ transplantation.

Islamic traditional architecture environment overlapping the modern architecture design

This paper investigates the purpose and the functions of buildings and their compatibility with Islamic culture and the environment. An analysis from ecological and environmental points of view is carried out. The challenge is how these traditional outlines can best fit the functions of the building and the facilities intended to be offered, and how the new building has satisfied the requirements of the traditional environment. The investigation also shows the increasing usage of modem design materials for the hospital, which does not offer sufficient heat insulation or reasonable lighting. Although the Mashiakhet Al Azhar and Dar E1 Eftaa establishments have completely different functions, their designs consider and recognize the environmental requirements and the historical background. The sites of the Mashiakhet Al Azhar and Dar E1 Eftaa compound have achieved complete harmony with the surrounding environment. The hospital may meet its utilitarian needs and functions, but lacks a general environmental and traditional balance with the whole district. However, functional and traditional aspects can be combined successfully at the same time.

Application of a distributed verification in Islamic microfinance institutions:a sustainable model

The literature gap in microfinance paradox of double bottom line(financial performance vs.outreach)has always been an interesting area of research.This paper proposes a theoretical model most suitable for Islamic Microfinance Institutions(MFIs)which enables Islamic MFIs’to operate together with the existing financial models compliant with Islamic Shariah Law.This model is based on a distributed verification/decision-making process that might be realized(but not necessary)through block-chain.Among the available distributed verification techniques,blockchain technology is an attractive emerging computing paradigm due to its decentralized,immutable,shared,and secure data structure characteristics.This model proposes three significant propositions.First,sharing information through blockchain will allow a transparent network in MFI operations,which will raise confidence for donors resulting in a causal effect of a relatively lower profit rate to be charged by the MFIs.Second,the consensus mechanism will enable risk-sharing,a character of Islamic finance;thus,the MFIs will operate without any collateral for low-risk firms.Third,the double bottom line of MFIs’long-lasting paradox would be solved.As for practical implication of this proposed model,the causal impact of lower cost investment by the lenders would increase social welfare because of no collateral and no initial wealth requirement.The proposed model proposes a credit rationing approach where profit can be negative.No collateral will be used when calculating the creditworthiness of a borrower.

Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies

Background:Saving and investment are two of the most important tools for economic growth.The interest rate has always been considered an important determinant of saving and investment.However,according to Islamic teachings,riba or earning interest on saving or investment is forbidden,and thus,many Muslims try to avoid earning income from the interest rate.Therefore,the aim of this study is to assess the effects of this religious guideline on the financial decisions of an Islamic country’s population and its impact on saving and investment.Methods:We applied the random effect and system generalized method of moments(GMM)model separately to data of 17 non-Islamic and 17 Islamic countries from 2005 to 2013.Results:The results suggest that people in Islamic countries are not concerned about the interest rate on saving,but in non-Islamic countries,the interest rate,per capita income,and inflation have significant positive impacts,and national expenditure has a significant negative impact on saving.However,in Islamic countries,remittances received and national expenditure have negative significant impacts,and per capita income has a positive significant impact on saving.In the case of investment,interest rate and inflation show a negative effect on investment while trade affects investment positively in both Islamic and non-Islamic countries.Furthermore,domestic credit provided by banks has a negative significant effect on investment in non-Islamic countries,while in Islamic countries,remittances show a positive significant impact on investment.Conclusions:The governments and policy makers of Islamic countries should not imitate the economic policies of non-Islamic countries because religious factors play an important role in the interest rate-saving relationship.Instead,they should increase per capita income by improving employment conditions and by reducing remittances received and national expenditure.Policies on saving should not allow earning interest.Furthermore,in order to increase investment,efforts should be made to lower the interest rate and inflation,and to enhance remittances received and trade.These policies will increase saving and investment in Islamic countries,ultimately resulting in improved economic growth.

Disintegration and Remodeling of the Islamic World by Western International Order

Irreparable consequences to Middle East geopolitics ensued as the political systems in the Islamic world declined in a process that began under the persistent infiltration and influence of the Western ideal of nation-state.Three progressive stages in this conceptual transformation show how longstanding multinational imperial systems in the Islamic world disintegrated after the introduction of uone nation,one staten forced upon Middle East states an unrealistic model and eroded the principle of supremacy of sovereignty that had just been established.Interventionist theories that took hold meant that the Islamic world's self-transformation has never caught up with the demand of Western strategies.The Islamic realm has failed to achieve what it set out to do because political systems that would have been adaptive to the reality of the Islamic world had collapsed.

Equation Discovery for Financial Forcasting in Context of Islamic Banking

This paper describes an equation discovery approach based on machine learning using LAGRAMGE as an equation discovery tool, with two sources of input, a dataset and model presented in context-free grammar. The approach is searching a large range of po- tential equations by a specific inodel. The parameters of the equation are fitted to find the best equations. The experiments are illustratedwith commodity prices from the London Metal Exchange for the period of January-October 2009. The outputs of the experiments are a large mumber of equations; some of the equations display that the predicted prices are following the market trends in perfect patterns.

Student capacity building of dengue prevention and control: A study of an Islamic school, Southern Thailand

Dengue has been a critical problem for an Islamic School, Nakhon Si Thammarat province, Southern Thailand. Objectives: 1) to build student capacity;and 2) to evaluate the results of student capacity building. Method: Participatory Action Research: PAR was applied in three phases: 1) the school-based preparation phase;2) the process of building student capacity phase, and 3) evaluation of the results of the student capacity building. Independent T-Test statistical method was used to analyze student capacity both before and after the intervention. Larval Indices were determined through ratio analysis. Results: Prior to the intervention, there was no clear strategy for combating dengue. In this study, three groups were formed to build student capacity: a leader group, a non-leader group, and a support group. The leader group (48 student leaders), critical to the study, was set as a dengue club named “Eliminate Ades Aegypti, the culprit of dengue” which focused on eight sets of activities: “Dengue or Death”, “Seniors educating juniors”, “Reward for good answers”, “Dengue monitoring team”, “Youth to expel mosquetoes”, “Mosquito or busy”, “Garbage elimination of Pondok”, and “Essential doctors”. The level of student capacity for the prevention and control of dengue of a sampling of 308 student representatives of the Pondok (Islamic school) showed an increase after intervention ( (SD);56.78 (17.06);65.33(15.36) and different statistic significant (P < 0.001). The Larval indices ratio levels had decreased from the original levels (BI = 244, HI = 45, and CI = 26) after intervention (BI = 137, HI = 39, and CI = 19). Dengue morbidity and mortality rates were not found during the study. Discussion: Although there had been an increase in student capacity, a decrease in the larval indices ratio, and the absence of a dengue epidemiology index, the high risk of a dengue epidemic might still be found in the school because the ratio of larval indices were higher than the standard index. Then, the committed participation of students, school, and communities around the school vicinity is needed in building student capacity of dengue prevention and control.

The Evolution of Botanical and Herbal Medicine in Islamic Civilization

Botanical science and medicinal plants are shaped by the translation movement in Islamic civilization and in the fifth century (AH), through the development of specialized media and the commencement of scientific and research trips, its foundations are strengthened. In the sixth and seventh centuries (AH), the development of the first botanical encyclopedias, the introduction of objective observations and practical experiences on theoretical issues, the prosperity of this science was provided by writing comprehensive books on medicinal plants and in the eighth century (AH). Like other intellectual and transcendental sciences, the loss of the past lost due to the decline of the writings and led to a recession. The Muslims played a role in preserving and building the body of knowledge of the Greek, Roman times. In fact, they gained this science from the distant paths. In the history of medicine, Islamic medicine is the science of medicine developed in the Islamic Golden Age, and written in Arabic, the lingua franca of Islamic civilization. In this article, we try to investigate the effect of Islamic scholars on the dynamics of medicinal herbs and the continuation of Muslim researches and innovations in the field of botany and medicinal herbs.

The concept of capital before and after industrial revolution： Islamic versus market economy

The concept of capital and ownership of capital in market economy and Islamic economy is different. Also the role that capital is expected to play in the economy is different in two economic systems. One of the key elements in creation of the capital （capital formation） is interest rate. In Islam interest is strictly forbidden. This paper reviews the concept of capital and the process of capital formation both before and after industrial revelation. In that context it also looks at the function of interest rate during the time of Prophet Mohammed and the present time.

The Impact of Social Professional Category Consumer＇s on Acceptance Level Towards Islamic Banking Window

Recently, Islamic banks have been presented as an alternative to conventional banks. Indeed, Islamic banks have proved their worth during the 2009 crisis. They are known like an ethical bank. In Tunisia, only three Islamic banks exist. Even the conventional banks are interested to offer Islamic banking products and services; they are called Islamic banking window. This paper aims to determine the level of acceptance of Islamic banking window on Tunisian consumers and the impact of the social professional category on it. The research questions as follows： Are the consumers familiar with the financial Islamic products？ Did they perceive any differences between conventional and Islamic financial products？ What are the levels of acceptance of an Islamic banking product offered by a conventional bank？ In this respect, a questionnaire was administrated to a sample size of 120 people constituted of 54% men and 46% women from Tunis City. Three types of social professional category are found： 62% employee, 32% senior, and 6% profession. The data were processed by SPSS 21. The results showed that the majority of the respondents have a lack of knowledge of the Islamic banking products. The majority of the respondents don＇t see any differences between the product name of conventional and Islamic banking products. The acceptance level of an Islamic banking product offered by a conventional bank is very satisfying, 53% of the respondents are certain to purchase an Islamic banking product from a conventional bank and 42% are not sure. Only 5% refused.

Fight Against Poverty From the Islamic Point of View： The Wealth Distribution and Share

Today, poverty is one of the most important problems in the world. This is not only the problem of poor people living in specific regions but also the problem of all people in general. Poverty is expected to decrease as the welfare level increases. The World Bank predicts that extreme poverty will disappear until 2030 but mentions significant hesitations in achieving this objective. Even though extreme poverty will have actually disappeared in 2030, the deep gap between the richest 20% and the poorest 20% will continue to maintain its presence. There are many reasons for poverty arising from individuals such as illiteracy, inexperience, and laziness. However, there are many reasons for poverty beyond the individual such as the management of the capital by a small group of people. While the capital continuously increases under the control of a narrow group, poor community deprived of increasing welfare benefits from it slightly and too late. In this case, the solutions that individuals striving to live below the poverty line can find on their own in order to keep alive remain quite limited. Islam has a shorter term solution for welfare share： Transferring a small amount of high-income group’s wealth to the low-income group. Through this worship called zakat, it is aimed to rid poor people of desperation. It is not theoretically impossible todevelop a method to reduce income inequality by taking the worship of zakat as a model.